Pertamina's new executives installed
JAKARTA (JP): The government installed the new board of directors of the state oil and gas company Pertamina on Wednesday, as part of a restructuring program for the country's largest state company being conducted in anticipation of the free market era.
The government reduced Pertamina's board of directorates from seven to six under the presidential decree No. 313/200, which was signed on Nov. 11, 2000 but only revealed to the public on Wednesday.
Newcomers to the board are Effendi Situmorang, who was appointed to head the directorate of development, and Iin Arifin Takhyan to head the directorate for the management of production sharing contractors. Both are new directorates within Pertamina.
Formerly, the management of production sharing contractors was held by a special agency under Pertamina, called the foreign contractors management body (BPPKA).
Iin was an expert member of staff for the Minister of Mines and Energy before taking over the new position.
Effendi was the vice president of American oil and gas company Unocal Indonesia Company until his appointment at Pertamina.
Effendi was one of several workers for foreign investors allowed to take a top position in the state company, which has previously been controlled by government and military officials.
Baihaki Hakim, former president of American oil and gas company PT Caltex Pacific Indonesia, who was appointed as Pertamina's president early last year, retained his position at the helm of the company.
Also retaining their post was finance director Ainun Naim, while Gatot K. Wiroyudo and Ariffi Nawawi were appointed to new positions as Pertamina's upstream and downstream directors respectively.
Previously, Gatot was Pertamina's director for exploration and production, while Ariffi was processing director.
The government dismissed the director for general affairs, Sjahrial Daud; director for fuel logistics and distribution, Harry Poernomo; and the director for shipping, port and communication affairs, Ilham Sjarif.
Their directorates have been merged into the directorates of downstream, and development.
"One month after you start working, the board of commissioners (of Pertamina) will demand that the new directors explain their future programs, actions and operational strategies," Minister for Energy and Mineral Resources Purnomo Yusgiantoro said during the inauguration ceremony.
Purnomo was referring to Pertamina's board of commissioners, of which he is a member along with three other ministers and the head of the National Development Agency (Bappenas).
"I want Pertamina in the future to become an organization whose principal activities are the decentralization and classification of core businesses," Purnomo continued.
He said that Pertamina's core business would be divided into the upstream sector, which comprises exploration and production activities, and the downstream sector which consists of distribution and trading activities.
Ultimately, he said, Pertamina would become a limited liability holding company.
"Pertamina must improve or cut out inefficient business units and press production costs, so that its trademark will be cheaper, quicker and better," Purnomo continued.
"The results should be measurable and entirely transparent," he added.
The government last year submitted to the House of Representatives a new oil and gas bill which, if enacted, would replace Law No. 8/1971 on Pertamina and Law No 44/1960 on the oil and gas industry.
The bill dismantles Pertamina's present dual-role as a regulator and an operator in the oil and gas industry, instead turning it into a limited liability company.
Baihaki has said he anticipated the bill, and explained that if it became effective Pertamina would simply relinquish its directorate for the management of production sharing partners. (bkm)